Post
Topic
Board Speculation
Merits 1 from 1 user
Re: Buy the DIP, and HODL!
by
Frankolala
on 20/03/2024, 20:47:40 UTC
⭐ Merited by JayJuanGee (1)
So, when you put money into bitcoin, you should be considering that money to be completely gone for 4-10 years or longer.. and you are not going to be able to or want to dip into it for any reason, except the passage of time and there after seeing that a lot of time has passed and your value in bitcoin had been compounding several times.. and as you keep investing, each time that you newly put money into bitcoin, that money becomes ineligible for withdraw for 4-10 years or longer.. so if you are still fairly aggressively investing into bitcoin 10 years down the road and you are still adding value to your holdings, then the new money that you put in has a 4-10 year investment timeline, and so it makes no sense to be selling any of your BTC if you are still accumulating 10 years down the road.
which such target 4-10 years depending on how frequent one his in his bitcoin accumulation, one can be able to secure a good portfolio for himself after accumulating and holding for such time rate . And for someone who's interested in holding , would actually need a good good source to hold for that long . One should always make good plans ahead accumulating and same time handling financial situation.

You have been mentioning aggressive when accumulating bitcoin if I may ask I can one know if his over doing it (getting too or over aggressive) with his investment , so sir @JayJuanGee how can one know  .

Maybe you should provide an example in regards to where the confusion might lay?

The general idea is that each of us should have some ideas about our discretionary income - which is the difference between income and expenses, and surely not too many folks are going to have exactly the same discretionary income each month, even if they might have a pretty steady income and some pretty steady expenses.  There is likely going to be some variance, which is part of the reason to maintain emergency funds, reserves and to manage aspects of your cash float.

The more organized that you are and the more experience that you have, then the more aggressive you can be in terms of spending higher amounts of your discretionary income on bitcoin (maybe even being able to spend 100% of your discretionary income on bitcoin), but if you are still trying to figure it out with exactness, and if you are still building your emergency funds and your reserves, then you would likely be better served by being less aggressive in terms of how much of your discretionary income you are spending on BTC, maybe only 10% to 20% of it.

You are likely going to be going overaggressive if you are spending beyond your abilities to be sufficiently organized, or spending high levels of your discretionary income without being sufficiently organized, or not establishing much if any of an emergency fund and/or reserves or prematurely tapping into your reserves and/or your emergency funds to put yourself into risky situations in regards to actual emergencies that might come, or inabilities to take advantage of BTC price moves, such as dips because you exhausted all of your funds without adequate preparations to be able to continue to buy and/or to buy on dips, if dips come. 

This is quite striking, it seems that an important part of our investment journey lies in this little discovery of what our discretionary income is, and from what you have said its not too good to be overly aggressive until we have found a balance or are able to some point to figure this out a little do we don't end up having or putting ourselves in instabilities like having to dip our hands in our emergency funds to cover up for expenses or our reserves and we miss out on opportunities or not having enough floats to carry around, and all this are also important part of our investment and are our various backbones in investing that would enable us maximise our investment in bitcoin, yes its better we allocate smaller amounts as newbies untill we have this calculations set out, then beign aggressive isn't an issue.
Yeah, it is better that as a new investor that don't have much faith in bitcoin, but wants to invest in it should start with a small amount that would not make him get worried. And after the first year, he must have improved in his bitcoin knowledge, amd have built more faith on bitcoin. Then he can increase the amount that is is using for his regular DCA weekly or monthly so that he can buy more Bitcoin than before.

When he has built strong faith in bitcoin and he has the opportunity to buy aggressively, then he has to do that so that he can acquire more bitcoin within a short period of time since he is still in his accumulation journey, but he should not overdo it, to the extend that he has no funds enough as his emergency funds, otherwise, he will go back and sell from his bitcoin, which has defeated the aim of constant buying and building to Hodli for long-term.